ATHENS, Greece — Greece’s president formally asked George Papandreou to form a government today, a day after the Socialist leader trounced the governing conservatives in an election focused on rescuing the economy.
Papandreou, a 57-year-old former foreign minister whose father and grandfather were both prime ministers, had insisted that Prime Minister Costas Karamanlis’ plans for austerity in the face of Greece’s worst economic crisis in years were wrong. Instead, he offered a more optimistic solution, saying he would inject up to euro3 billion ($4.4 billion) to reinvigorate Greece’s economy.
After a campaign fought almost exclusively on economic issues — and following widespread anger over repeated scandals that had already whittled away support for Karamanlis’ conservative government — voters were persuaded.
Near-final results, with 99.72 percent of votes counted, showed Papandreou’s Panhellenic Socialist Movement, or PASOK, had swept to victory with 43.92 percent after five years of conservative governance, with Karamanlis’ New Democracy trailing with 33.48 percent — the party’s worst showing ever.
Humbled by his defeat, the 53-year-old Karamanlis, who stormed to power in 2004 to become the youngest prime minister in modern Greek history after more than a decade of socialist rule, resigned as leader of the party founded by his late uncle and former prime minister, Constantine Karamanlis, 35 years ago.
He visited President Karolos Papoulias today to hand over control of the government, having himself driven to the presidential mansion from the neighboring prime minister’s office to avoid reporters and TV cameras.
Sunday’s election gave PASOK a solid parliamentary majority of 160 seats in the 300-member body, ending two years of a government that held a razor-thin majority. Karamanlis won re-election in 2007 with 152 seats, but soon saw that drop to 151 after a series of scandals and rebellions from within his party ranks.
New Democracy will now hold just 91 seats, with the communist KKE party coming in third with 7.54 percent and 21 seats, followed by the nationalist LAOS with 5.63 percent and 15 seats. Another left-wing party, SYRIZA, won 13 seats with 4.59 percent.
“A strong political mandate of the Greek people showed that they want real work from Prime Minister Papandreou,” said political analyst Anthony Livanios. “They want real action, they want an effective way for the country … to get out of the economic crisis.”
Papandreou’s victory, along with a recent win by socialists in Portugal, bucks a trend in which conservatives have surged in Europe’s powerhouse economies, including Germany, where Chancellor Angela Merkel won re-election last week.
President Barack Obama was among the first international leaders to congratulate Papandreou, telephoning him Sunday night, the White House said.
Papandreou now must deal with an economy expected to contract in 2009 after years of strong growth, and a budget deficit that will probably exceed 6 percent of economic output. The new Socialist government likely will have to borrow heavily just to service the ballooning debt — set to exceed 100 percent of GDP this year — and keep paying government wages and pensions.
Papandreou has pledged to limit borrowing by reducing government waste and going after tax dodgers.
“Greeks and the electorate do not have any illusions that a magic change will take place tomorrow morning on the economy,” Livanios said late Sunday. “They know it’s a difficult economic crisis ahead, and they will look for a credible handling and a credible solution.”
In his first speech after being elected, Papandreou warned Greeks they faced tough times.
“Nothing is going to be easy. It will take a lot of hard work. I will always be upfront with the Greek people so we can solve the country’s problems together,” he said.
“I know the potential of the country very well, a potential being drowned by corruption, favoritism, lawlessness and waste.”
Karamanlis announced the early election just halfway through his second four-year term, gambling that he could win a new mandate to tackle Greece’s economic woes. But he was trailing in polls when he called the election last month, sparking criticism from within his own party.
Karamanlis appeared to have been paving the way for his own departure, said political analyst and publisher of the City Press and Free Sunday newspapers, Giorgos Kyrtsos.
The prime minister appeared to have “a personal exit strategy,” Kyrtsos said. “He didn’t want to suffer the personal, psychological, political attrition associated with the handling of a crisis … and he organized his departure.”
After his 2007 re-election, Karamanlis’ popularity eroded quickly, damaged by financial scandals, including a land-swap deal that cost the state more than euro100 million ($145 million) and forced two of his aides to resign.
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